Re: General Equilibrium - June 17

Posted by Amit Goyal on Jun 17, 2012; 12:43pm
URL: http://discussion-forum.276.s1.nabble.com/General-Equilibrium-June-17-tp7577923p7577965.html

Komal, In the economy you mentioned Competitive equilibrium prices are:
Price of X is 3 and price of Y is 1.
Individual with utility function u(x, y) = 3x + y consumes the following bundle: (2/3, 2)
Individual with utility function u(x, y) = 4x + y consumes only X: (4/3, 0)